1 yr

Figure 3.5 Typical cost/benefit profile

What can TPM give my business?

The benefits from TPM implementation are outlined under the following three categories and are shown in the case study examples that follow.

Business benefits

• Planning with confidence through the supply chain to provide what customers want, when they need it, just in time, right first time.

• Flexibility - being able to react quickly to market changes without high levels of stock.

• Improvement in OEE as a measurable route to increased profitability. Equipment benefits

• Improved process capability, reliability, product quality and productivity.

• Economical use of equipment throughout its total service life starting from design, called TPM for Design or Early Equipment Management.

• Maximized efficiency of equipment.

People benefits

• Increased utilization of hand/operational skills, teamworking and problem-solving skills.

• Practical and effective example of teamworking, including TPM in Administration for the support functions.

• Trouble-free shifts, because value-adding activities become proactive rather than reactive.

Some examples of benefits from TPM

Case A: chemical processing plant

• By-product output constrained by capacity

• 5 per cent increase in OEE to 90 per cent

• Worth £400 000 in increased contribution per annum

Case B: manufacturing machining cell TPM pilot project

• OEE increased from 40 per cent to 72 per cent over six months

• 47 per cent reduction in set-up and changeover times

• 100 hours per month liberated via TPM improvements

• Additional manufacturing potential worth £48 000 per year by bringing subcontracted off-load work in-house

Case C: automotive manufacturer

• 15-year-old wheel balancer

• Average OEE before TPM = 45 per cent

• Each 1 per cent improvement of OEE = £694 per annum

• OEE achieved after three months = 69 per cent

Case D: polymer-based material producer

• Production line from raw material input to bulk reels

• Reference period OEE = 77 per cent

• Consistent achievement of best of best OEE = 82 per cent

• Value of achievement = £250 000 per annum in reduced costs

Case E: cement plant

• Weigh feeder mechanism unreliability

• Reference period OEE = 71 per cent

• Best of best OEE achievement = 82 per cent

• Worth £35 000 in energy savings per annum

• Other TPM pilot improvements saved £300 000 per annum, plus avoidance of capital expenditure of £115 000

Case F: offshore oil platform with declining reservoir After two years of using TPM principles:

• October 1997 achieved longest production run without shutdown since 1994

• Gas lift now at greater than 90 per cent efficiency compared to 40 per cent in 1995 and 60 per cent in 1996

• OEE reference period 60 per cent, current levels 75 per cent Case G: pharmaceutical manufacturer

• TPM project actioned as part of a four-day facilitator training workshop

• Additional revenue generated worth £5 million per annum

• One-off cost of implementation £2000

TPM champion: 'I am glad we did not agree to a fee based on a percentage of the profits generated!'

Quotable quotes

'TPM is making rapid inroads into our reliability problems because of the structured approach which we have introduced. In the past, we have been shown the concepts, but we had to work out how to apply them. TPM is a much more practical and hands-on approach.'

Head of Continuous Improvement, European car manufacturer

'TPM is an excellent team-building process which helps develop the full potential of our people.' Head of Maintenance

'Change initiated by the team through TPM is more rapidly accepted into the workplace than when imposed by management.' TPM Champion

'If used effectively, TPM could be the most significant change to affect production and maintenance since Japan's entry into the car market.'

Manager, Continuous Improvement

'The main thing I've learnt is that TPM is not an option for us, it's a must.'

Plant Manager after attending four-day TPM workshop

'If you haven't got the time to do things right the first time, how are you going to find the time to put them right? Eventually TPM gives you the time to do things right the first time, every time.'

Offshore Maintenance Manager

'TPM is a new way of thinking, the cornerstone of which is the involvement of all our employees. The end result is a more efficient factory, a more challenged workforce and most importantly a reliable, high-quality service to our customers.' Operations Director, packaging company

'The OEE ratio is the most practical measure I have seen' Senior Manager

Within these improvement zones, operators, maintainers and first line managers apply TPM by addressing cleanliness and workplace organization-eliminating dust, dirt and disarray. This is a positive step-cleaning is inspection, which is discovering abnormalities, which allows us to restore or refurbish, which gives a positive result, as well as a bright workplace, and ultimately gives our workforce back some self-esteem and pride of ownership. This is called the 5 Ss or CAN DO.

Progress through these levels should be directed by asking:

• Why don't we know the true consequences of failure (both obvious and hidden)?

• Why does this part of the process not work as it is meant to?

• Why can't we improve the reliability?

• Why don't we have the skills to set the optimal conditions for the process?

• Why can't we maintain and progressively improve our technology to maintain those optimal conditions for longer?

The answer to all these questions is usually 'We don't know' because the shopfloor workforce have not been given the time, inclination and encouragement to find the answers. TPM gives the necessary time and motivation to do so. It also makes managers accountable for finding answers to each of those questions (i.e. pillar champions).

In summary, TPM recognizes that to achieve a reliable and flawless operation through continuous improvement, it is the people who make the difference. By unlocking your full productive capacity, TPM unlocks the potential of your workforce. You will need to invest around 5 per cent of your time to implement TPM and support continuous improvement. Like all good investments, this can be expected to provide a return on investment.

The nine-step TPM improvement plan is described in detail in later chapters and is at the heart of the practical application of TPM. It is a no-nonsense, no 'rocket science' practical application of common sense. The improvement zone implementation process is the way that this common sense becomes part of the routine. It takes time and tenacity, but the results are incredible.

Before moving into the necessary detail of the planning process and measurement of TPM, it is worthwhile to give an overview of TPM and to identify the key building blocks which will be explained in detail and illustrated by case studies in later chapters.

Whilst visiting Japan on a TPM study tour in 1992, we vividly remember being told by the Japanese Managing Director of a recognised world class manufacturer that

'... in the 50s and 60s we had 'M' for Manufacturing. In the 70s we had 'IM' for Integrated Manufacturing. In the 80s we had 'CIM' for Computer Integrated Manufacturing'. He paused for a moment and then added '...For the remainder of this decade and 2000 and beyond, my company is going to be pursuing 'CHIM': Computer Human Integrated Manufacturing... We have decided to re-introduce the human being into our workplace!'

Today, some eight years later our interpretation of that powerful message is that it certainly represents a challenge for all of us to develop and harness people's skills in parallel with advancing automation, as illustrated in Figure 3.8.

The challenge for many companies is to extend the useful life and efficiency of their manufacturing assets whilst containing operating costs to give a margin which will maximize value to their shareholders and, at the same time, offer enhanced continuity and security of employment. This statement is true whether the particular manufacturing assets are twenty years of age or are just about to be commissioned.

The more forward-thinking companies are linking this challenge to new beliefs and values which are centred on their employees through, for example:

• Integrity Openness, trust and respect for all in dealing with any individual or organization

• Teamwork Individuals working together with a common sense of purpose to achieve business objectives

• Empowerment An environment where people are given both the authority and the resources to make sound decisions within established boundaries

• Knowledge and skills Recognizing, valuing and developing the know ledge and skills of their people as a vital resource

• Ownership A willingness on everyone's part to get involved and take responsibility for helping to meet the challenges of the future

Put another way, we can win the challenge by:

• working together

• winning together

• finishing first every time

This can be delivered by specific values, for example:

• working in a completely safe and fit-for-purpose environment

• where quality is paramount in everything we do

• where we have a business understanding linked to our activities

• and where reliable equipment, operated by empowered and effective teams, will ensure we finish first every time.

TPM, suitably tailored to the specific environment, can be a fundamental pillar and cornerstone to achieve the above goals, beliefs and values since:

• We are therefore responsible for its availability, reliability, condition and performance within a safe and fit-for-purpose environment.

• We will therefore ensure that our overall equipment effectiveness ranks as the best in the world.

• We will continuously strive to improve that world-class performance.

• We will therefore train, develop, motivate, encourage and equip our people to achieve these goals.

• We will therefore create an environment where our people want to challenge and change 'the way we do things here'.

The last statement is the fundamental future challenge for management if the previous statements are to mean anything in practice.

As the aerospace and nuclear power industries, with their relatively complex technologies and systems, emerged in the 1970s and 1980s, we had to respond with a selective and systematic approach. There developed reliability-centred maintenance (RCM), which considers the machine or system function and criticality and takes a selective approach, starting with the question: 'What are the consequences of failure of this item for the machine or system, both hidden and obvious?' For example, if the oil warning red light indicator comes on in your car, it is obvious that you are low on oil. The hidden consequence, if you do not stop immediately and top up the oil, is that the engine will seize! It is therefore good practice to check the oil level via the dipstick at regular levels. RCM takes a systematic approach, using appropriate run to failure, planned, preventive and condition-based strategies according to the consequences of failure.

TPM uses a similar logic, but emphasizes the people, measurement and problem-elimination parts of the equation and not systems alone. It emphasizes that people - operators, maintainers, equipment specifiers, designers and planners - must work as a team if they are to maximize the overall effectiveness of their equipment by actively seeking creative ways and solutions for eliminating waste due to equipment problems. That is, we must resolve equipment-related problems once and for all, and be able to measure that

Development of technology and skills

Development of technology and skills

Advancing automation


Advancing automation


Computer/human integrated manufacture

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